argentina

In 2006, Oxy acquired Vintage Petroleum’s production assets in Argentina. Net production averaged 36,000 BOE per day in 2006 and Oxy expects to nearly double that over the next five years through aggressive waterflooding and EOR projects. During 2006, Oxy drilled 135 new wells and performed a number of recompletions.

Oxy’s assets are concentrated in the San Jorge Basin in the extreme southeastern region of the country, approximately 1,100 miles (1,800 kilometers) south of Buenos Aires. Oxy now holds 15 blocks in the Basin, with plans to expand further through strategic acquisitions and bid rounds. It is a resource play, as evidenced by the 90+ percent drilling success rate. The advent of advanced 3-D technology in the 1990s, helped unveil the Basin’s full potential, enabling technical staff to effectively target the abundant small structures. Because the previous operator had limited resources to fully develop the field, Oxy, with its financial strength, has numerous opportunities to increase reserves and production. Oxy expects to utilize its expertise in reservoir management, drilling, facilities engineering and EOR to ramp up development and exploration programs. Oxy geoscientists are currently evaluating several prospective exploration opportunities and have planned 32 exploration wells in the San Jorge Basin in 2007.

About 10 percent of Oxy’s Argentinean production is in the Cuyo Basin in the foothills of the Andes near the city of Mendoza. In 2007, Oxy is planning to drill approximately 15 to 20 wells in the Cuyo Basin and to conduct a 250-square kilometer 3-D seismic program to identify additional prospects. Oxy also is performing technical evaluations in the three exploration blocks it holds in the Nuequen Basin, Argentina’s most prominent oil production area, located just north of the Cuyo Basin.